Big 3 Powertrain Operation
2M Sq Ft Mfg. Space
$15M Annual Indirect Spend
Outsourced Third-Party Storeroom Management Program
As very high demand production client, this customer desired a single point of responsibility for its indirect material and on-site storeroom operations.
Seeing a steep growth curve, they had neither the resources nor the desire and expertise to properly manage their inventory and as a result the storeroom was in poor condition, had high levels of inaccuracy, and the plant was regularly impacted by material availability issues and time to delivery challenges.
Upon implementation, ValuePoint took over all management and execution of the on-site storeroom, all inventory management responsibility and internal/external communication as it related to indirect material.
Within months of taking over the material availability issues were dramatically improved and continued to improve as the storeroom was methodically inventoried and reorganized.
Processes, procedures, and detailed work instructions were developed specific to this client and Associates were trained and evaluated accordingly. Delivery concerns were no longer an issue as ValuePoint served as the go between for resolving data and request discrepancies with their corporate Purchasing department as well as order follow-up and expediting needs.
A set of indirect reports was jointly established and setup by ValuePoint (with daily automated delivery to the Client) to assist with indirect decision making, metrics management, and oversight of our performance.
While continuing our work on existing inventory and continuous improvement activities, ValuePoint also took the lead on this client’s rapid expansion of production by taking responsibility for the initial quoting, setup, and PFEP (Plan For Every Part) of thousands of new indirect components over the months that followed. This work helped ensure the timely availability of indirect material needed both for the new equipment and the Team Members responsible for running it.